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FATF plenary meeting- warns Pak. but keeps it off the blacklist
Why is it in news?
- Pakistan has avoided being placed on the Financial Action Task Force (FATF) blacklist during the multilateral financial watchdog’s plenary meetings in Orlando, Florida.
More in news
- Warning: The country, which continued to remain on a greylist, was given a warning at the end of the plenary session and told that it lacked a proper understanding of transnational terrorist financing.
- Indian efforts: The mention of transnational terrorist financing is significant in light of India’s efforts to isolate Pakistan on the international stage in the context of its support for terror in Kashmir.
- Failure in execution and meeting deadlines:(1) The FATF expresses concern that not only did Pakistan fail to complete its action plan items with January deadlines, it also failed to complete its action plan items due May 2019.(2) The FATF strongly urges Pakistan to swiftly complete its action plan by October 2019 when the last set of action plans are set to expire.
- Reasons to keep Pak. on grey list: No adequate laws to deal with money laundering and terrorist financing.
- Blacklist, greylist criteria:(1) To stay off of the FATF blacklist, the support of at least three of a total of 36 (excluding two regional organisations) FATF members is required.(2) Fifteen members need to support a country’s move off of the greylist, as per the FATF charter.
Source
The Hindu